Green hydrogen is rapidly emerging as a key component in transitioning to a sustainable energy future. Produced from renewable energy sources, this clean-burning fuel offers a range of applications in industries from transport to electricity generation. And, unlike hydrogen produced from fossil fuels, green hydrogen does not emit carbon dioxide, making it a critical tool in the fight against climate change. In this deep dive, we take a look at the critical role that green hydrogen can play in complementing existing renewable energy offerings amid the push toward net zero.

The many uses of hydrogen

The energy revolution is in full swing, and the world is turning towards renewable energy sources to power the future. At Atlas Renewable Energy, we’ve seen first-hand how large industrial energy users in sectors like chemicals and mining are making the switch to solar and wind power to run their operations – slashing carbon emissions while helping to drive a more renewable electricity grid.

However, there are still significant challenges in decarbonizing the global economy completely. Aviation, shipping, long-distance trucking, and heavy industries like concrete and steel manufacturing require high energy density fuel or intense heat, which are difficult to electrify. Hydrogen fuel cells, which have been used to send rockets into space since the 1950s, could be a solution for the heavy-duty transport industry, while hydrogen-fueled planes could reduce the climate impact of flying by up to 75%.

But it’s not just in replacing solid fuel where hydrogen can play a leading role in cleaning up the global economy. It can also store energy, acting as a buffer for renewable energy sources like wind and solar. These sources are subject to fluctuations, producing energy only when the wind blows or the sun shines; hence energy storage solutions are crucial for their widespread deployment. While battery technology has been rapidly developing, it still has some way to go before it can provide sufficient backup for a fully renewable grid. Green hydrogen offers a reliable and scalable solution for energy storage and could be a game-changer for the sustainable energy future.

From Gray to Blue to Green: a look at the different types of Hydrogen

Hydrogen, the most abundant element in the universe, is the key to unlocking a greener future. But to truly harness its potential, we must first understand how hydrogen is produced and its impact on the environment.

Because hydrogen atoms do not exist in nature by themselves, they must be decoupled from the other elements they attach to. The majority of hydrogen currently used is created through a process called steam methane reforming, which uses fossil fuels, such as propane, gasoline, and coal, to create high-temperature steam that reacts with methane to produce hydrogen, carbon monoxide, and carbon dioxide. While this method may seem convenient, it comes at a steep cost to the environment – the resulting gray hydrogen generates 830 million metric tons of CO2 emissions each year.

But there’s a cleaner alternative. Blue hydrogen, produced through the same process but with the capture and storage of CO2 emissions, offers a step towards reducing the carbon footprint of hydrogen production.

And then there’s green hydrogen, the cleanest form of all, which is created through the electrolysis of water using renewable energy sources like solar or wind power. The result is completely green hydrogen, with no emissions and only water as a byproduct. Green hydrogen has the potential to revolutionize manufacturing, transportation, and beyond as we strive toward a cleaner, more sustainable world.

Green hydrogen around the world

The Inflation Reduction Act, signed into law by US President Joe Biden in August last year, is widely seen as a turning point for green hydrogen production. Under the law, green hydrogen plants in 2023 can receive a production tax credit of 2.6 cents per kWh and up to $3 per kg of hydrogen, respectively, for the first 10 years of operation, thereby slashing production costs and bolstering the US Department of Energy’s plans to produce 10 million metric tons of clean hydrogen by 2030, which include US$8bn for the development of regional hydrogen hubs.

In Latin America, numerous countries are already working to take advantage of their high renewable energy potential to put national hydrogen roadmaps in place. Chile’s strategy, launched in 2020, sets out specific goals such as being the country with the cheapest green hydrogen on the planet, at less than U$S1.50 per kg by 2030, while Colombia’s roadmap, published in 2021, establishes tax incentives for both green hydrogen projects and their so-called “blue” counterparts – those produced using fossil fuels but with emissions capture – to attract new investments.

Green hydrogen is also proving to be a game-changer in Europe’s quest to reach net-zero carbon emissions by 2050, with the European Commission placing the fuel at the heart of its plan. As part of the European Union hydrogen strategy, which was implemented at the beginning of 2022, all new power plants must be equipped with turbines that are ready to run on a hydrogen-natural gas blend, with plans to certify these turbines for 100% hydrogen use by 2030. The push toward green hydrogen is not limited to power plants. The continent’s steelmakers are also exploring its potential as a substitute for coal in their furnaces, demonstrating that green hydrogen is a practical and scalable solution for reducing carbon emissions across a range of industries.

Green hydrogen and renewables: a perfect partnership

With the growth of solar and wind power, the potential for producing and storing clean hydrogen will continue to expand. Moreover, hydrogen can store surplus renewable energy that is generated when supply exceeds demand, providing a stable source of clean energy for the future. As such, the marriage of green hydrogen and renewable energy is made in sustainable heaven, enabling us to meet tomorrow’s energy demands while safeguarding the planet. 

For green hydrogen producers and consumers, the time to act is now: acquiring renewable energy will pave the way to accelerate both production and adoption. 

In partnership with companies like Atlas Renewable Energy, at the forefront of the energy transition movement, hydrogen producers have an unparalleled opportunity to lead the charge toward a sustainable energy future. We’re excited about the possibilities.

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Alfredo Solar, general manager of Atlas Renewable Energy in Chile, discusses the value startups bring to Latin America’s renewable energy industry.

Q. What value do startups provide to Atlas and the renewable energy industry?

A. Atlas is a leading solar company, and we have grown in line with industry standards. We have realized that, unlike traditional suppliers, startups are more innovative. Therefore, relying on them is a way to solve problems creatively, adapt to new challenges, and be highly innovative. In short, we don’t believe in rigid solutions; we want to incorporate new visions, ideas, and technologies.

Q. How are the solutions offered by a startup less rigid?

A. They are generally growing companies focused on developing themselves and are open to new solutions. They don’t try to sell you a standard product; instead, they try to find a solution to your problem together with you and to evolve with the company until the optimal answer is found.

 Q. What kind of challenges does the renewable energy industry face that can be solved with the support of startups?

A. There are many. For example, there are issues related to environmental impact, panel temperature, and soil erosion where the plants are installed. There are also challenges associated with the preservation of vegetation.

There are also issues related to the use of resources. For example, radiation calculations, operating algorithms that monitor how the panels follow the sun, more modern electrical equipment, transformer cables, and automation for better performance and more efficient operation of the plants, both in their construction design and in their process, to gain an additional percentage of energy generation.

Q. How can startups contribute to the operation of Atlas Renewable Energy?

 A.  We are calling on startups to offer solutions for the development of the solar industry. We want to bring them on board to jointly develop new technologies or test the technologies they have created. We are not looking for emerging companies that are being born with an idea; we are looking for companies that already have a product. We intend to allow them to test that product, service, or technology on an accurate scale in Atlas plants anywhere in Latin America.     

Q. How have you collaborated with startups in Chile?

A. We have a test lab in one of our plants. We set aside a specific area for that lab and tested different things there. For example, variations of photovoltaic panels, new technologies, and types of albedo, that is to say, the soil that reflects the sunlight so that the panels capture it better.

Some startups have suggested helping us improve the type of soil and the reflection of the soil and to change the materials used. We also have initiatives in terms of cleaning. For example, we use robots that clean the panels without water. These are areas where we have incorporated technologies that are not traditional in the renewable energy industry.  

Q. What do you recommend to startups that aspire to be considered as partners?

A. The first thing is to encourage them to participate. They should contact us, show us their products, and tell us how we could improve our operation with their technology, products or services. From there, the next step is to evaluate their proposals. There are no qualifications: we look for everything that can contribute somehow. We are interested in measuring and testing the efficiency, efficacy, and effectiveness of the solutions they offer us.

 Q. What is the call for the Open Innovation Challenge that Atlas and Endeavor are inviting to participate in?

It is a call to receive proposals for solutions from emerging companies that save us costs and improve our production, allowing us, for example, to predict with greater precision how much energy a plant will generate. We are also looking for solutions that help us operate more efficiently by reducing costs or using fewer resources, such as dry-cleaning robots, which are especially useful in places like the Chilean desert, where water is scarce. Another example is solutions that allow us to monitor plants remotely.

In general, the call for proposals has been excellent. We have received applications from companies across the globe: Europe, America, and Asia. As for the prize, we plan to offer 20,000 dollars to the companies that qualify to test their technologies with Atlas. With that money, a pilot project will be conducted within one to six months. If the pilot project succeeds, we will have more than twenty solar plants where it can be implemented on a massive scale.  

Q. What is Endeavor’s participation in the Open Innovation Challenge?

Endeavor has the potential to discover, attract, structure, and systematize innovative ideas. It would have been very challenging for us to do it directly. Endeavor is specialized in approaching and connecting startups with the companies that require the services. In our case, Atlas is a platform for investing in renewable energy. Our goal is to support, and the challenge is to develop beneficial and environmentally friendly technology. The idea is to leave a positive legacy.

Q. How advanced are we in Latin America in the technologies you need at Atlas?

A. All these technologies were created in Europe, where they have been developed for many more years, and many people are thinking about improving and optimizing the industry. Latin America is ready; it is a continent growing enormously in installing renewable energy. There are some pioneering countries: Brazil, Mexico, and Chile. Other countries, such as Peru and Colombia, are just starting and have the greatest potential for growth in renewable energy in Latin America.

We are a company that was born in Latin America. Now we are expanding into Europe, starting with Spain. We will incorporate the products and services of startups that we see as useful in all our plants. Brazil is where Atlas has the largest number of operating plants, and we would be very interested in testing new services. Chile, Mexico, and Uruguay are other countries where we can test them.

Q. How are we doing in Latin America regarding innovation in the renewable energy industry?

A. Latin America is one of the continents with the fastest-growing renewable technologies. In a way, Europe has already gone down this road, and the spaces are much smaller. There, it is increasingly complex to install new renewable plants.

Latin America starts with some pioneering countries (Brazil, Chile, and Mexico), and others just beginning the journey and have everything to grow. This is the case in Colombia, where the penetration of renewables may be around one percent. Latin American countries can grow to whatever they set as a goal. Chile is already at 20 percent of renewable energy and plans to go further. The extreme case is Uruguay, where almost all the energy consumed is renewable. It does not use fossil fuels to generate electricity.

Q. How do you perceive Latin America in terms of the contribution of innovative ideas?

A. I think it is a difficult issue to measure. There will be more and more support for an industry such as renewable energies, which has grown exponentially and will grow the most globally. It is impressive.

There are young people with initiatives that accompany the development of the renewable energy industry with ideas and an eye on spaces with opportunities. We are open to proposals and welcome at any congress or meeting the ideas of those who approach us and offer things.

I encourage those who are in charge of startups. No one should feel that their product or service is not important. They should know that there are spaces to develop projects together. A good idea that may partially solve a problem can be a great solution as long as people dare. The key is to have initiative. There are no bad ideas. A well-executed project can work, and we want to offer the space to test ideas.

Q. Tell us about Atlas’ innovation lab in Chile.

A. It’s in a plant in Chile, very close to Santiago. It is a 120-megawatt plant connected to the grid and is operational. We decided that in that plant, which has a full-scale operation, we could allocate a segment, a section, for different tests. We have been doing this for about three years now.

When, for example, bifacial modules (modules that capture sunlight not only on the upper side but also on the lower side) appeared in the laboratory, we could test different types and see how efficient they were.

The panels follow the sun as it moves during the day. But then, many variables influence their efficiency, such as the slope of the terrain, the shadow of one panel on another, or the shadow that a hill may cast on the plant. We saw a chance to improve if we had a specific algorithm for each row of panels and not a generic one for the whole plant. That gave us one or two percent more energy generation. We can use our laboratory in Chile or adapt our other plants to do the tests.

Ultimately, at Atlas, we are open to experimenting with startups and anyone with the idea that can contribute to the cause of generating renewable energy that is friendly to the planet and profitable for Atlas Renewable Energy.

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With its commitment to building true partnerships with its clients and partners, Atlas Renewable Energy is reimagining the way companies think about their energy strategy.

At Atlas, the goal is not just to provide renewable energy solutions, but to work closely with clients to understand their specific objectives and goals – and help them to achieve them. Whether it’s incorporating sustainable practices, promoting diversity and inclusion, or working out bespoke energy profile solutions for complex company structures, Atlas becomes a true extension of its clients’ teams, to ensure they are not just meeting their energy needs, but also reaching their wider financial and environmental, social, and governance (ESG) objectives.

In this Q&A, we sit down with Eddaly Cuesta, Director of Sustainability at Atlas Renewable Energy, to learn how the company’s unique approach to partnership and collaboration is driving real change for the better.

Q. How would you define Atlas’ strategy for building relationships and collaborating with clients?

A. Atlas is recognized for our high standards in developing, constructing, and operating renewable energy projects. We have a proven successful track record in renewable energy development across the Americas, and we’re a regional leader in delivering competitive, clean energy solutions to large corporate customers. Our success has been underpinned by our commitment to delivering customer-focused energy solutions with the goal of providing green energy at competitive costs through tailor-made, innovative solutions. However, what really sets us apart are our efforts to ensure that every single project we do delivers multiple benefits across various dimensions.  

Q. What are Atlas’ main areas of focus when it comes to creating a wider impact?

A. As a developer of renewable energy projects, we are a key component in transitioning to a low-carbon global economy. The projects we have under operation have avoided millions of tons of CO₂ from being released into the atmosphere. Although this is an important achievement, our efforts don’t stop there. Our mission is to positively disrupt and elevate the energy sector by putting sustainability and social progress at the center of everything we do, to achieve a better and more sustainable future for all.

To achieve this, we have a clear alignment with several of the United Nation’s Sustainable Development Goals (SDGs), core pillars that define our view of what sustainability means, and a range of programs and investments to turn these pillars into practical action – both inside Atlas and in the locations and communities where we operate and where our projects are built.

Q. How do you put these aims into practice?

A. Incorporating social sustainability and community benefits into renewable energy projects is a major focus for us. We develop and design our social investment projects hand in hand with the communities where we operate, via a participatory process where the communities themselves identify their social and economic development needs.

One recent example is Project Carmen at our La Pimienta Solar Plant in Mexico. This program, in partnership with the local health authorities, brought accessible healthcare to the nearby communities through the construction, rehabilitation and equipment of two health centers. Atlas also supported the community with the installation of dry bathrooms and wood-saving stoves for over 40 families.

We are also committed to advocating for gender equality. Through our flagship program, We Are All Part of the Same Energy, we create opportunities for female workers training programs and dedicated hiring policies to reduce inequalities and promote the acquisition of skills and technical knowledge for women in what is still a male-dominated industry.

Using market studies, we identify skill gaps and job opportunities and then design our training to meet those needs. We then work to include a proportion of the women trained either into our supply chains and mobilize our contractors to prioritize their inclusion in their hiring process or facilitate linkages with other industries in our area of influence.

Beyond gender equality, we are also committed to diversity and inclusion. We operate across diverse markets and, as a result, we are cognizant of the need to tailor our approach to the societal backdrop of the area in which we operate to have the greatest impact.

One example of this is our Jacarandá project in Brazil. Our hiring policies for that project have been structured to ensure that at least 35% of the total workforce is made up of self proclaimed African descent, who are often excluded from employment opportunities because of racial discrimination. To date, 74% of the women and 79% of the men currently employed at Jacarandá are of African descent. 

At that same site, we also worked with the community to elevate and celebrate their cultural heritage, which culminated in the publication of Memorias do povo do terreiro, a collection of stories about the African religious heritage in contemporary Brazil.

We also practice what we preach within our own organization: through our recruitment policy and talent and mentoring programs, we have created an internal culture that embraces equal opportunities, non-discrimination, and respect for diversity.

Q. How does Atlas leverage its sustainability strategy to enable its clients to achieve their own objectives?

A. We have made a firm commitment to environmental protection, sustainable economic growth and social wellbeing, and we have incorporated this commitment across our values, policies and programs. Around the world, corporations are increasingly becoming aware of the urgency of adopting ambitious sustainability goals, be that reducing CO₂ emissions and greening their energy matrix, or developing pioneering and ambitious social community engagement programs to promote diversity and inclusion. In this regard, Atlas is a vital strategic partner. Beyond the emissions reduction benefits of implementing a clean energy solution, our projects provide clients with the opportunity to maximize their positive impact across pillars such as bolstering quality education, increasing female participation in the workforce, and enhancing sustainable living and the circular economy.

Our recent partnership with leading materials science company Dow is a good illustration of this. Not only does the contract to secure renewable power capacity contribute to achieving one of Dow’s goals to obtain 750 MW of its power demand from renewable sources and reduce its net annual emissions by 15% from 2020 to 2030, but we were also able to align with Dow’s ESG principles that encourage economic growth and social development.

We believe every business should be a sustainable business, and by bringing the capabilities from our investments into ESG, diversity and inclusion to our clients, we can accompany them on their journey to creating a better future for all.

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Last year, International Renewable Energy Certificate (I-REC) sales in Brazil more than doubled to 9.5 million, up from 4 million in 2020. Atlas Renewable Energy takes a look at the trend, and explains what companies need to know before using I-RECs to meet their sustainability objectives. 

“We’re receiving an increasing number of enquiries from international and national companies with operations in Brazil about I-RECs,” says Felipe Maldonado, commercial analyst at Atlas Renewable Energy, which holds one of the largest solar energy portfolios in Brazil, with almost 1.6 GW of contracted projects. It recently became the first solar developer in the country to offer Brazilian RECs that foster all of the 17 United Nations’ Sustainable Development Goals.

“These enquiries fall into two main groups: companies that already understand I-RECs and want to purchase them, and those who are looking for guidance,” says Maldonado. He adds that companies are particularly interested in understanding how I-RECs can help them achieve their sustainability goals, and how they differ from other instruments such as carbon credits.  

I-RECs are just part of the solution

Although it may be tempting for executives to think that simply purchasing I-RECs is enough to become “green”, this is far from the case. Numerous regulatory bodies around the world, from the Securities Exchange Commission in the United States to the Monetary Authority of Singapore, are cracking down on so-called corporate greenwashing, enforcing disclosure standards on environmental, social and governance (ESG) reports as vigorously as they uphold rules for other corporate reporting. There are no shortcuts here, but I-RECs should – and can – be used as part of a wider integrated climate action strategy. 

“The first step is to carry out a carbon inventory in order to find out the level of CO2 emissions your company is responsible for,” says Maldonado. Armed with this information, companies can then take steps to reduce their carbon footprint, through changes in production, transportation, and manufacturing practices, for example. For large electricity users, making the switch to renewables through a partnership with Atlas is an obvious way of slashing emissions. “Where I-RECs – and other instruments such as carbon credits – come in is for those emissions that are impossible to reduce,” explains Maldonado. 

Globally, the I-REC market is still at a relatively nascent stage, but demand is increasing as more and more corporations commit to 100% renewable energy consumption and climate disclosure objectives as laid out by the CDP and RE100. 

“Although it’s not yet mandatory for companies to neutralise their carbon footprint, many business leaders are taking proactive steps to align their environmental strategy with global best practice,” says Maldonado, adding that growing reputational risk and pressure from customers are driving an increasing number of companies to look at ways of slashing their CO2 emissions. “Our approach at Atlas is to partner with those companies to help them leverage I-RECs to reach their goals.” 

Avoiding greenwashing

These goals include meeting compliance with external and internal renewable energy targets, as well as giving their environmental claims real substance – helping them to avoid greenwashing. “One I-REC avoids the emissions created by the use of 1 MWh,” says Maldonado. In 2021, every 1MWh of energy consumed in Brazil created 120kg of carbon emissions – up from around 50 kg in 2020. This huge increase was caused by a rise in thermoelectric generation as a result of the worst drought in almost a century, which saw the country’s hydroelectric capacity fall as dams dried up. 

“In a country like Brazil where the effects of climate change are already so visible, companies that are serious about tackling their emissions can make an important statement through the use of I-RECs, which enable them to make certain claims about their climate impact,” says Maldonado, adding that several companies seek to do this in order to strengthen their brand value and gain a competitive edge in the future low-carbon economy. “However, it’s vital to do this in the right way. Before making any claims, they need to bring in a consultancy to verify that they are using the appropriate number of I-RECs to compensate for their emissions. By doing this, the company – and its customers – can ensure that they are in line with the Scope 2 guidance of the GHG Protocol.” 

Gaining internal buy-in

Given the current global economic and geopolitical backdrop, convincing already overburdened business units to invest in I-RECs or carry out voluntary climate action activity is often a challenge for sustainability officers within large companies. “Overwhelmingly, ESG teams face challenges in developing a roadmap for achieving net-zero,” says Maldonado. “Management wants to report their carbon emissions and reduce their footprints, and they want to demonstrate credibility to investors, customers, civil society, and other stakeholders, but finding a way to do this while also leading the business through challenging times often represents a barrier.”

However, companies don’t need to go it alone. Numerous consultancy firms can help them develop an I-REC strategy that best matches their goals.

“For companies that don’t have in-house expertise on GHG accounting, the liaison tends to be either a broker or a consulting company. These intermediaries ensure their clients buy I-RECs to help offset their emissions properly, taking the uncertainty out of the process,” says Maldonado. “As internal conversations evolve and executives within companies become more familiar with the finer details of decarbonization, they tend to reach out to us directly via their in-house ESG or sustainability teams.”

Contributing to a more sustainable future for Brazil

As more and more companies with operations in Brazil look for tangible ways to deliver on their renewable energy promises, I-RECs are demonstrating their worth as the most credible way to account, track and assign ownership of renewable energy, as well as encourage the generation of more clean electricity by providing a demand signal to the market.

In partnership with Castleberry Media, we are committed to taking care of our planet, therefore, this content is responsible with the environment.